- Today, the court will once again hear arguments from Celsius and its creditors.
- Creditor’s argued that the court should overrule any objections and approve settlement.
The creditors of bankrupt cryptocurrency lender Celsius and the Series B holders have agreed on a plan to disburse $25 million to the shareholders, with $24 million going towards legal fees and the remaining $1 million being split evenly among the parties.
While the terms of the sale to Galaxy Digital of the self-custody platform GK8 were not made public as part of Celsius’ bankruptcy filing. Galaxy spokesperson Michael Wursthorn had previously told that the price was much less than the $115M Celsius purchased for.
The Series B funding round for the insolvent crypto lender was completed in November of 2021. The round, which was oversubscribed and increased the rise from $400 million to $750 million, was headed by growth equity company Westcap and one of Quebec’s pension funds.
Awaiting Court Approval
At first, some Series B shareholders complained that the $24 million allotted wasn’t enough to pay their legal fees. While others said that the $1 million was an unjust “windfall” for certain holders.
In a court filing, the largest group of Series B shareholders said they intend to split the settlement’s $1 million in half with all preferred shareholders. They argued that the court should overrule any objections and approve the settlement so that the bankruptcy case can continue.
Today, the court in New York will once again hear arguments from Celsius and its creditors. The former CEO of Celsius, Alex Mashinsky, was detained last week. After an inquiry into the company’s collapse, and the insolvent lender is being sued by multiple U.S authorities.
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